GRAPEVINE, Texas (AP) — The CEO of American Airlines says the once-volatile industry has changed so radically that his company will never lose money again.
Even in a bad year, Doug Parker says, the world’s biggest airline should earn about $3 billion in profit before taxes.
Parker made the declaration at a meeting with analysts and reporters on Thursday.
From 1978 through 2013, American’s cumulative profit was $1 billion. By the end of this year, Parker says, the airline will have earned $19.2 billion in pretax income in the last four years.
Airlines have benefited in that span from lower fuel prices, higher revenue from fees, and less competition because of mergers. American, Delta, United and Southwest control more than 80 percent of the U.S. air-travel market.